The US Dollar is well on Thursday with a fresh dose of hope for enacting a tax bill in the US. Australia's weak trade balance pushed AUD down, but NZD is losing the most. EUR / USD is sitting at 1.18, but USD / JPY approaches 112.60 with the help of the growing Tokyo stock exchange. The stock market bounced after Wednesday's declines. Crude oil on in reverse.
On Thursday 7th of December, the event calendar is light in important news release, but the global investors will keep an eye on German Industrial Production data, Halifax House Price Index data from the UK, Final GDP from the Eurozone, Ivey Purchasing Managers Index and Building Permits from Canada and Unemployment Claims data from the US. There is a scheduled speech from ECB President Mario Draghi later in the day as well.
EUR/USD analysis for 07/12/2017:
In the packet of data coming from the US economy, the fresh estimates of employment changes calculated by ADP were in the foreground. Value at the level of 190k positions was widely expected by the market participants, although the decomposition by sectors should be considered surprising - the more so as yesterday's fall in the non-productive ISM sub-index did not suggest the dominant impact of services (155k). Ahead of the tomorrow's NFP Payrolls figures, the data from the US were in line with expectations, so the market participants are not expecting any surprises.
Let's now take a look at the EUR/USD technical picture at the H4 time frame. The market broke below the technical support at the level of 1.1807 and then tested it and reversed. Currently, the price is trading close to the recent local lows around the level of 1.1791 in oversold market conditions. The next technical support is seen at the level of 1.1725.
Market Snapshot: USD/JPY bounced from the trend line
The price of USD/JPY had bounced from the black trend line around the level of 112.00 and now is heading higher towards the recent technical resistance at the level of 112.85, which is just above the 50% Fibo level. The key resistance still remains at the level of 113.24 anyway.
Market Snapshot: Gold brokes below technical support
The price of Gold has broken below the key technical support at the level of $1,260 and currently is trading just above the local support at the level of $1,253. The market conditions are oversold and there is a slight bullish divergence between the price and the momentum indicator, so there are some chances for a bounce.
